Note 11 - Business Segment Information

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 11. Business Segment Information

BioLargo has five operating business segments, plus its corporate entity which is responsible for general corporate operations, including administrative functions, finance, human resources, marketing, legal, etc. The operational business segments are:

1. ONM Environmental -- which sells odor and volatile organic control products and services (located in Westminster, California);

2. Clyra Medical Technologies (“Clyra Medical”) -- which develops and sells medical products based on our technologies;

3. BLEST -- which provides professional engineering services on a time and materials basis for outside clients and supports our internal operations as needed (located in Oak Ridge, Tennessee);

4. BioLargo Water (“Water”) – our research, development and innovation group operating out of the University of Alberta, Edmonton, Canada; and

5. BioLargo Energy Technologies, Inc. (“BETI”) – formed to commercialize our sodium-sulfur battery technology.

Other than ONM Environmental, during the last three quarterly periods none of our operating business units have operated at a profit, and therefore each required additional cash to meet its monthly expenses, funded through BioLargo’s sales of debt or equity, research grants, and tax credits. BETI and Clyra Medical have also been funded by third party investors who invest directly in exchange for equity ownership in that entity.

The segment information for the three and nine months ended September 30, 2023, and 2022, is as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Revenue
BioLargo corporate	$	—		$	2		$	—		$	4
ONM Environmental		2,513			1,199			7,374			2,499
BLEST		843			401			1,742			1,613
BETI		—			—			—			—
Water		22			1			31			1
Clyra Medical		14			17			20			34
Intersegment revenue		(720	)		(120	)		(1,307	)		(365	)
Total	$	2,672		$	1,500		$	7,860		$	3,786
Research and development expense
BioLargo corporate	$	(234	)	$	(140	)	$	(665	)	$	(570	)
ONM Environmental		(14	)		—			(14	)		—
BLEST		(433	)		(100	)		(971	)		(288	)
BETI		(537	)		—			(840	)		—
Water		(128	)		(119	)		(401	)		(446	)
Clyra Medical		(68	)		(31	)		(262	)		(73	)
Intersegment R&D		720			119			1,307			359
Total	$	(694	)	$	(271	)	$	(1,846	)	$	(1,018	)
Operating income (loss)
BioLargo corporate	$	(797	)	$	(783	)	$	(2,230	)	$	(2,925	)
ONM Environmental		969			400			2,786			418
BLEST		(568	)		(179	)		(1,388	)		(158	)
BETI		(559	)		—			(943	)		—
Water		(155	)		(141	)		(549	)		(572	)
Clyra Medical		(427	)		(240	)		(1,250	)		(736	)
Total	$	(1,537	)	$	(943	)	$	(3,574	)	$	(3,973	)
Interest income (expense)
BioLargo corporate	$	(3	)	$	(6	)	$	(43	)	$	(18	)
ONM Environmental		(1	)		—			(5	)		—
Clyra Medical		(8	)		(8	)		(25	)		(24	)
Water		—			—			1			—
Total	$	(12	)	$	(14	)	$	(72	)	$	(42	)

As of September 30, 2023	BioLargo		ONM		Clyra		BLEST		Water		BETI		Elimination			Total
Tangible assets	$	579	$	3,300	$	1,202	$	480	$	89	$	144	$	(41	)	$	5,753
Right of use leased asset		72		—		—		705		—		—		—			777
Investment in South Korean joint venture		15		—		—		—		—		—		—			15
Total	$	666	$	3,300	$	1,202	$	1,185	$	89	$	144	$	(41	)	$	6,545

As of December 31, 2022	BioLargo		ONM		Clyra		BLEST		Water		Elimination			Total
Tangible assets	$	669	$	2,064	$	631	$	441	$	194	$	(41	)	$	3,958
Right of use		136		—		—		731		—		—			867
Investment in South Korean joint venture		33		—		—		—		—		—			33
Total	$	838	$	2,064	$	631	$	1,172	$	194	$	(41	)	$	4,858